LVMH racked up record-breaking income final 12 months, pushed by the recognition of cosmetics big Sephora, which it owns.
Sephora’s CEO, Guillaume Motte, informed The FT that its gross sales success, which is highlighted in LVMH’s 2023 annual outcomes, benefited from the “lipstick impact.” It is a pattern the place clients nonetheless buy small luxuries even when the financial system is hard.
LVMH’s “selective retailing” division, which incorporates Sephora, hit 17.9 billion euros, or $19.6 billion, in income. Its earnings had been up 76%. It is a greater bounce than LVMH’s vogue or watches & jewellery divisions.
Sephora sells common manufacturers like Drunk Elephant and Fenty Magnificence, which have usually gone viral on TikTok.
Even Gen Alpha has been leaping on the Sephora hype, a lot to the chagrin of Gen Zers, who’ve criticized the presence of younger children on the high-end magnificence shops.
In-store gross sales have pushed Sephora’s latest development, Motte informed The FT. It is a level echoed by LVMH CEO Bernard Arnault, who not too long ago overtook Jeff Bezos because the world’s richest individual.
Within the annual outcomes report, Arnault linked the corporate’s development to the “ever-growing reputation of Sephora’s retailer idea worldwide.”
The US is Sephora’s largest market and “we’re gaining market share there like loopy,” Motte informed The FT. Throughout North America, Sephora reached $10 billion in income in 2023.
Motte added that he was optimistic Sephora may go 20 billion euros in gross sales “sooner relatively than later.”
